Creative Financing in Utah County

3 Replies

Hi BP community!

My husband and I are trying to pull together our first buy and hold rental property in Utah County. We are having a really hard time getting a conventional mortgage though because we are self employed and started our company (Chip Cookies if any of ya'll have heard of it) only a year and a half ago (everyone seems to require 2 years of tax returns for self-employment). We have about 150k in savings and together make about 90k/year and have a good credit score, but this self employment thing is holding us back! 

I just finished reading BP's book on creative financing, and thought it was helpful but am a little stuck on where to go next. I have talked with a couple sellers about seller financing, but few have been even slightly interested. We have also thought about finding someone to partner with, but it seems hard to find a good enough deal in this area that would work for two parties. 

I wondered if any of you in Utah have any specific advice for our market? Are there other options we should be pursuing or people we should be talking to? 

You're right that in this market in our area, seller financing is rare and partnering splits your earnings so that can be hard.  However, if you're the one with the cash it's not hard to find a partner to be the loan side through a joint venture or similar.  Usually it's easier to qualify for a loan than it is to amass a downpayment so you're a step a head in that respect.  You can always negotiate a deal to buy out their interest later.  If you want to PM me I can connect with some people who have expressed interest in that.

Your other option is to look at partial doc lenders.  Certainly you could go hard money, but if it will be a while until you can go full doc then it could get very expensive.  Partial doc lenders are private lenders, not freddie/fannie insured so the rates are higher, but they're willing to work with self-employed individuals more readily.  I've got some materials from a couple at my office I can dig up when I'm back so PM me and I'll get it to you.

Hello Taylor. 

I am a lender here in Utah and have access to a good loan option for your situation. We don't need tax returns or personal income. We just need 20% down and the mortgage payment has to be 90% of the market rents (determined by the appraiser).

Like Jeremiah mentioned, rates are bit higher - around 2% higher than conventional financing - but it is way better than hard money.

Let me know if you're interested in more info.

Hope that helps!